Star Asia Investment (3468) Q4 2026 earnings summary

Executive summary

• FP20 revenue was ¥10,269m, up 2.8% YoY; operating income rose 0.5% to ¥5,788m, while ordinary income and net income fell 1.7% to ¥4,754m and ¥4,753m.

• FP20 DPU was ¥1,769, 1.4% above forecast; net income per unit excluding gain on sale was ¥1,668, up 3.5% from forecast.

• Occupancy was 98.6% at Jan. 31, 2026, up from 97.1% at Jul. 31, 2025; total assets were ¥293,847m and equity ratio 49.3%.

• The New Mid-Term Plan targets annual DPU growth excluding gains on sale of at least 3%, DPU of at least ¥1,913 and asset size of ¥500bn by 2030.

Financial highlights

• Lease business revenue was ¥9,915m, 3.4% above forecast; NOI was ¥7,542m, 2.4% above forecast, and NCF was ¥6,789m, 6.1% above forecast.

• FP20 DPU was ¥1,769 versus ¥1,745 forecast; no internal reserves were used, and gain on sale contributed ¥101 per unit. FFO per unit was ¥2,112 and AFFO per unit ¥1,831.

• Rental revenue increased to ¥9,465m from ¥9,056m; gain on real estate sales declined to ¥273m from ¥442m.

• Net cash from operating activities was ¥14,032m; investing activities used ¥9,074m and financing activities used ¥4,844m; cash equivalents ended at ¥15,446m.

Outlook and guidance

• FP21 and FP22 DPU forecasts are ¥1,650 and ¥1,660, respectively, each including ¥33 per unit from internal reserves.

• FY ending Jul. 2026 forecast: revenue ¥9,476m, operating income ¥5,548m and net income ¥4,345m; FY ending Jan. 2027 forecast: ¥9,615m, ¥5,687m and ¥4,373m, respectively.

• Forecast assumes redemption of preferred equity during the Jul. 2026 period, no other asset changes through Jan. 2027, and refinancing of all debt due in the forecast periods.

• Distributions include expected ¥88m reserve reversals in each period; no distributions in excess of earnings are planned, and results may vary with rents, repairs, markets and asset transactions.

• FP21 and FP22 3-month TIBOR assumptions are 1.30% and 1.35%; the FP21 benchmark-rate assumption rose while DPU guidance remained unchanged.